Note 15. Notes payable and other borrowings

Notes payable and other borrowings are summarized below (in millions). The weighted average interest rates and maturity date ranges shown in the following tables are based on borrowings as of March 31, 2016.


	Weighted Average Interest Rate	March 31, 2016		December 31, 2015
Insurance and other:
Issued by Berkshire due 2016-2047	2.2%	$	18,184	$	9,799
Short-term subsidiary borrowings	1.9%		2,565		1,989
Other subsidiary borrowings due 2016-2044	3.9%		7,324		2,811

		$	28,073	$	14,599

On January 8, 2016, Berkshire entered into a $10 billion revolving credit agreement, which expires January 6, 2017. The agreement has a variable interest rate based on the Prime Rate, or a spread above either the Federal Funds Rate or LIBOR, at Berkshire’s option. Borrowings under the credit agreement are unsecured and there are no materially restrictive covenants. In connection with the PCC acquisition, Berkshire borrowed $10 billion under the credit agreement.

In March 2016, Berkshire issued €2.75 billion in senior unsecured notes consisting of €1.0 billion of 0.50% senior notes due in 2020, €1.0 billion of 1.30% senior notes due in 2024 and €750 million of 2.15% senior notes due in 2028. In March 2016, Berkshire also issued $5.5 billion in senior unsecured notes consisting of $1.0 billion of 2.20% senior notes due in 2021, $2.0 billion of 2.75% senior notes due in 2023 and $2.5 billion of 3.125% senior notes due in 2026. The proceeds from these debt issues were used in the repayment of all outstanding borrowings under the aforementioned credit agreement. Other subsidiary borrowings at March 31, 2016 included $5.1 billion attributable to PCC.


	Weighted Average Interest Rate	March 31, 2016		December 31, 2015
Railroad, utilities and energy:
Issued by Berkshire Hathaway Energy Company (“BHE”) and its subsidiaries:
BHE senior unsecured debt due 2017-2045	5.1%	$	7,815	$	7,814
Subsidiary and other debt due 2016-2064	4.8%		28,777		28,188
Issued by BNSF due 2016-2097	4.9%		21,518		21,737

		$	58,110	$	57,739

BHE subsidiary debt represents amounts issued pursuant to separate financing agreements. Substantially all of the assets of certain BHE subsidiaries are, or may be, pledged or encumbered to support or otherwise secure debt. These borrowing arrangements generally contain various covenants including, but not limited to, leverage ratios, interest coverage ratios and debt service coverage ratios. BNSF’s borrowings are primarily senior unsecured debentures. As of March 31, 2016, BNSF and BHE and their subsidiaries were in compliance with all applicable debt covenants. Berkshire does not guarantee any debt, borrowings or lines of credit of BNSF, BHE or their subsidiaries.


	Weighted Average Interest Rate	March 31, 2016		December 31, 2015
Finance and financial products:
Issued by Berkshire Hathaway Finance Corporation (“BHFC”) due 2016-2043	2.5%	$	14,172	$	10,679
Issued by other subsidiaries due 2016-2036	5.0%		1,184		1,272

		$	15,356	$	11,951

In March 2016, BHFC issued $3.5 billion of senior notes consisting of $750 million of 1.45% senior notes due in 2018, $1.0 billion floating rate senior notes that mature in 2018, $1.25 billion of 1.70% senior notes due in 2019 and $500 million floating rate senior notes that mature in 2019. The borrowings of BHFC, a wholly owned finance subsidiary of Berkshire, are fully and unconditionally guaranteed by Berkshire.

On March 25, 2016, Berkshire amended the revolving credit agreement entered into in January 2016. The amendment reduced borrowing capacity from $10 billion to $7.5 billion. As of March 31, 2016, our subsidiaries also had unused lines of credit and commercial paper capacity aggregating approximately $9.2 billion to support short-term borrowing programs and provide additional liquidity. Such unused lines of credit included about $4.4 billion related to BHE and its subsidiaries. In addition to BHFC’s borrowings, Berkshire guarantees other subsidiary borrowings, which aggregated approximately $3.3 billion at March 31, 2016. Generally, Berkshire’s guarantee of a subsidiary’s debt obligation is an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all present and future payment obligations.